INTAC International Announces Record 2004 Earnings & Continued Growth

INTAC International Announces Record 2004 Earnings & Continued
Growth
* Company reports record 2004 revenues of $115.3 million and net income of $5.8
million




HONG KONG, March 9  /PRNewswire-FirstCall/ -- INTAC International Inc.
(NASDAQ:INTN) (FSE: WKN 805768), a leading provider of a full range of
integrated career development services to Chinese students as well as
management software products for educational institutions in China, today
announced its results of operations for the year ended December 31, 2004.

Revenue increased by $23.9 million, or 26.1%, to $115.3 million for the year
ended December 31, 2004, from $91.4 million for the same period in 2003. Gross
profit increased by $8.7 million to $12.2 million for the year ended December
31, 2004, from $3.5 million for the same period in 2003.  The gross margin
increased by 6.8% to 10.6% for the year ended December 31, 2004 from 3.8% for
the same period in 2003.

Income from operations was $6.26 million for the year ended December 31, 2004,
as compared to a loss from operations of $282,797 for the same period in 2003. 
Net income was $5.8 million ($0.28 per share) for the year ended December 31,
2004, as compared to a net loss of $239,196 ($0.01 per share) for the same
period in 2003.

Q4 2004 revenue was $50.8 million (career development services $4.2 million and
distribution business $46.6 million), operating income was $5.5 million (career
development services $1.9 million and distribution business $3.6 million) and
net income was $4.8 million (career development services $1.9 million and
distribution business $2.9 million), as compared to Q4 2003 revenue of $24.9
million (all distribution business), operating loss of $209,409 (career
development services $133,516 and distribution business $75,893) and net loss
of $145,975 (career development services $65,809 and distribution business
$80,166).

The increase in career development services revenue in 2004 is due to the
redirection of the Company's business plan from the traditional distribution
business to its career development services, and primarily consisted of
revenues from sales of our education administration software.  The increase in
distribution business revenue in 2004 is due to an increase in average sales
prices and increased sales volume.  Changing technology and new customers
enabled the Company to continue the substantial growth during 2004.

The increase in income from operations and net income in 2004 was primarily due
to the expansion of the career development services business and the increase
in revenue and improved gross profit margins in the distribution business.

The strategic redirection of the Company's business plan from the distribution
business to its career development services, which was initiated in Q4 2003
with the formation of our joint venture with China's Ministry of Education, is
now showing marked progress.

"2004 was a defining year for INTAC's new career development service business
segment, capped by an outstanding fourth quarter.  We are delighted with the
strong results we achieved with our career development services.  The success
of the strategic shift to the more lucrative career development services has
validated our 14 months of hard work," said Wei Zhou, Chairman and CEO of
INTAC.  "Our strong partnership with the Ministry of Education has been a key
success factor in our business redirection.  We anticipate our career
development services revenue and income to increase substantially in 2005 and
to create significant shareholder value for our investors."

"In 2005, we expect continued strong growth in the market for educational
services in China," continued Mr. Zhou.  "Our career development services are
showing excellent momentum as we roll-out some very promising services in the
first quarter of 2005, like the Family School Link Communication System, our
management career training services, as well as HR and recruiting services
delivered through our Internet portals http://www.phrbank.com/ and
http://www.joyba.com/ .  As a result, we expect to continue expanding INTAC's
service and product portfolio and marketing programs, as well as expansion of
our student database to a number of up to 15 million students in 2005.  With
the effective execution of our M&A and partnership strategies, we believe that
2005 will be an outstanding year for INTAC's evolution to become an integrated
education company serving to empower China's educational future and
infrastructure."

"The financial health of our Company has never been better," said J. David
Darnell, Senior Vice President and Chief Financial Officer.  "We have increased
cash balances and working capital with no debt which gives us the ability to
execute our business plan.  We are now positioned to continue our growth both
internally as well as through acquisitions such as Beijing Huana Xinlong
Information and Technology Development Co., Ltd. ("Huana Xinlong"), acquired in
December 2004, which has had a very accretive impact on both revenue and
earnings."

The Company previously has filed its annual report required to be filed with
the Securities and Exchange Commission on Form 10-KSB as a qualified small
business issuer.  For its fiscal year ended December 31, 2004, the Company is
no longer eligible to file its annual report on Form 10-KSB, and instead is
required to file its annual report on Form 10-K as an "accelerated filer." 
Until very recently, the Company erroneously believed that it would first be
required to comply with Section 404 of the Sarbanes-Oxley Act for its fiscal
year ending December 31, 2005.  The Company has now become aware that it is
required to comply with Section 404 for its fiscal year ended December 31,
2004.  Although the Company has been working to establish an effective
framework to assess its internal controls over financial reporting in
accordance with Section 404, the Company has not completed an assessment of its
internal controls over financial reporting for its fiscal year ended December
31, 2004, in accordance with Section 404.  As a result, the Company's auditors,
KBA Group LLP, will be unable to express, and will likely disclaim, an opinion
as to management's assessment and as to the effectiveness of the Company's
internal controls over financial reporting for its fiscal year ended December
31, 2004.  The Company's inability to complete an assessment of its internal
controls over financial reporting in accordance with Section 404 and KBA's
inability to express an opinion thereon does not necessarily imply that a
significant deficiency or material weakness in the Company's internal controls
is present.  Management is not aware of any material weaknesses in the
Company's internal controls over financial reporting, and nothing has come to
the attention of management which causes them to believe that any material
inaccuracies or errors exist in the Company's financial statements as of
December 31, 2004.  Further, KBA has advised the Company that notwithstanding
the lack of management's assessment of the Company's internal controls in
accordance with Section 404, KBA expects to render an unqualified opinion on
the Company's financial statements.

The Company's annual report on Form 10-KSB for the year ended December 31, 2003
and quarterly report on Form 10-Q for the quarter ended September 30, 2004 may
be viewed at the SEC's website http://www.sec.gov/ and the Company's annual
report on Form 10-K for the year ended December 31, 2004 with a detailed
description of the company's services, products and growth strategy will be
available March 16, 2005 at the same location.

About INTAC International, Inc.

INTAC International, Inc. is focused on the exploitation of strategic business
opportunities available in China and the Asia-Pacific Rim.  INTAC is refocusing
its business plan from the traditional distribution of premium brand wireless
handsets to a provider of a full range of integrated educational and career
development services as well as management software products for educational
institutions in China.  In a strong cooperation (partnership) with China's
Ministry of Education, INTAC tailors its online and offline services and
products towards a target group of 300 million Chinese students.  The services
are delivered through the Company's websites, http://www.phrbank.com/ and
http://www.joyba.com/ , as well as through a range of mobile value-added
services, its print formats and its local Career Service Centers across China.

Forward-Looking Statements

This press release contains certain "forward-looking statements."  Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause our actual results, performance or achievements
expressed or implied by such forward-looking statements to differ materially
from those projected or implied.  Factors that could cause or contribute to
such differences include, among other things: changes in general business
conditions; the impact of competition in our industry, especially in the Asia-
Pacific Rim; the fact that we are an early stage company with an unproven
business model; our need for additional working capital, particularly to the
extent that we are able to locate a suitable business opportunity; the added
expense structure assumed by us as a U.S. public company; political and
economic events and conditions in jurisdictions in which we operate; PRC
Internet laws and regulations that are unclear and will likely change in the
near future; restrictions on foreign investment in the PRC Internet sector that
are imposed by the PRC government; the PRC government that may prevent us from
distributing; regulation and censorship of information distribution in China
which may adversely affect our business; political and economic policies of the
PRC government; the risk of the loss of the agreements, or the exclusivity
terms, with the Education Management Information Center; the high cost of
Internet access that may limit the growth of the Internet in China and impede
our growth; advertising and e-commerce customers that have only limited
experience using the Internet for advertising or commerce purposes; the
acceptance of the Internet as a commerce platform in China which depends on the
resolution of problems relating to fulfillment and electronic payment; concerns
about security of e-commerce transactions and confidentiality of information on
the Internet that may increase our costs, reduce the use of our Internet portal
and impede our growth; our network operations that may be vulnerable to
hacking, viruses and other disruptions, which may make our products and
services less attractive and reliable; changes in interest rates, foreign
currency fluctuations and capital market conditions; and other factors
including those detailed under the heading "Business Risk Factors" and
elsewhere in the Company's annual report on Form 10-KSB for the year ended
December 31, 2003 and quarterly report on Form 10-Q for the quarter ended
September 30, 2004, as filed with the Securities and Exchange Commission.  We
disclaim any intention or obligation to revise any forward-looking statements
whether as a result of new information, future events or otherwise.  INTAC
undertakes no obligation to update any forward-looking statements made in this
media release.

Contact: J. David Darnell, Senior Vice President and Chief Financial Officer,
469-916-9891, for further information.

Internet: http://www.intac-international.com/ 

DATASOURCE: INTAC International, Inc.



CONTACT:  J. David Darnell, Senior Vice President and Chief Financial

Officer of INTAC International, Inc., [phone]



Web site:  http://www.sec.gov/ 

Web site:  http://www.intac-international.com/

http://www.phrbank.com/

http://www.joyba.com/ 

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